As expected by the Dollar index, prices are starting to make a pull back test. We have seen the initial bullish signal once the triangle was broken. Now bulls need to show more signs of strength in order to confirm that trend has reversed.
Short term support is found at 80.40-30 and short term resistance is found at 80.80-81. The upward move from 79.70 is not a clear impulsive move yet. Prices should not break below 79.85-90. If that price level is broken, then we should expect prices to reach 79 again and why not lower.
On the daily chart prices have found strong resistance in the red area as expected. The first try to break was rejected, but we should give it some more time before rejecting the bullish scenario. As long as prices trade above 79.80-90 we believe the chances are in favor of the bulls. Our longer-term target remains 82.50 as prices trade above 79.80. Breaking below this level we should expect 78.50 to be tested.
The material has been provided by InstaForex Company - www.instaforex.com
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